- Key insight: SoFi reported strong results in its quarterly earnings, but stopped short of increasing its full-year outlook due to market conditions.
- Supporting data: Total net revenue increased 43% year over year to $1.1 billion this quarter, boosted by record loan originations for the company.
- Expert quote: "We see SoFi steadily taking share from traditional banks and generating durably above-average organic revenue." —William Blair analysts
SoFi reported record net revenue in its first-quarter earnings report on Wednesday and matched Wall Street expectations, but the company is not changing its full-year outlook.
The online lender-turned digital bank reported net revenue of $1.1 billion for Q1 2026, up 43% year over year.
SoFi now holds $53.7 billion in total assets, a 42% increase from the $37.7 billion it held last year.
SoFi's adjusted revenue of $1.087 billion beat Wall Street consensus estimates of $1.049 billion by 3.6%, according to S&P Capital IQ.
The company also hit a net income of $166 million, or 12 cents per share, aligning exactly with Wall Street estimates.
However, SoFi did not change its full-year guidance and maintained its 2026 revenue outlook at 30% in anticipation of an interest rate freeze from the Federal Reserve.
"We went into the year with a view that we'd have at least two rate cuts, and that was one of the key assumptions to our outlook for revenue guidance," CEO Anthony Noto said on a Bloomberg Live segment on Wednesday. "And while we beat the quarter, we're not raising full year guidance because we now expect no rate cuts, and that will be a more difficult environment to operate in than if we had two rate cuts."
Noto also cited macroeconomic uncertainty, such as "global issues with the Middle East and the pressure on oil and inflation generally," as a factor in the company's decision to maintain its full-year revenue outlook.
SoFi's total loan origination hit a record $12.2 billion this quarter, a 68% increase year over year from $7.2 billion. The company attributed the increase to new records across its personal, student and home loan products.
SoFi also
However, multiple analysts expressed concerns over a decline in loan originations from SoFi's Loan Platform Business product, which saw $3 billion in personal loans originated on behalf of third parties compared to $3.6 billion last quarter and a subsequent dent in fee revenue.
"Our sense is that private credit woes are hitting home," William Blair analyst Andrew Jeffrey said in a research note.
In response to an analyst question regarding the market's concerns about
"In fact, we have demand above our contractual obligations that we have on volume that we're producing," he said.
Noto also said in the Bloomberg segment that concerns about private credit are not relative to SoFi's business operations.
"Our partners in the Loan Platform Business are buying consumer unsecured loans from us, not financing companies with corporate debt," he said.
Shares fell 13% by midday Wednesday in the largest single-day move the stock has seen in the past year.
"Generally, when you don't raise guidance, you give people something to worry about," Noto said. "I think it's just the reality of the investment markets. People think there's some degree of uncertainty, while the outlook for the market is different today than one was when we gave guidance three months ago. If the interest rates do actually come down, we'll see a big pickup in our business that would cause us to be more bullish than we already are."
An analyst research note from William Blair maintained its outperform rating for SoFi's stock even as it acknowledged short-term headwinds for the company.
"We expect shares will be pressured by lack of upside flow through to guidance, pressured fee revenue, and tepid loan loss performance," the note read. "However, there is no change to our long-term bullish thesis, as we see SoFi steadily taking share from traditional banks and generating durably above-average organic revenue."
Noto also highlighted SoFi's recent
"As a nationally chartered bank, we saw a tremendous opportunity to bring Fiat and crypto banking to businesses on a single, integrated and fully regulated platform," he said. SoFi is initially offering its Big Business Banking product to customers operating in crypto or crypto-adjacent industries.
